Tax reconciliation payrolls and debits

As each payroll is processed, we debit the required payroll taxes that apply—we then pay and file taxes and forms.

If adjustments are made that affect the amount of taxes owed (after payrolls have already processed, or forms filed), you may be liable to pay more to federal or state agencies.

To properly account for the changes and calculate tax differences, we run a “tax reconciliation” payroll to make sure the correct tax amounts have been paid and reported to each agency. When these types of payrolls are processed, you may see that:

If your company has multiple bank accounts set up, we'll debit or credit the "default" bank account on file.